Gross & Net Unit Areas
Congrats for launching CONNOISSEUR and creating a Forum for interaction. The regular updates and communication are very helpful. Please keep up the good work. However, there is one issue that hits at the very principles of Pearl Dubai's values of 'Transparency, Trust & Support'. And this needs to be addressed urgently with compassion and empathy.
We had reserved an office unit in Dubai Pearl's South Tower. At the time of booking, there was absolutely no mention or indication that the Gross Area could be reduced upto 20%. I came to know of this only when the PSA was sent for our signatures. This amounts to effectively increasing the Per Sq Ft rate. Also, our initial projections about the return on investment have totally gone haywire. As per our contracts with some other reputed developers, a normal variation of 2-3% is accepted for reasons beyond the control of the developers. In the absence of any specific information, this is what should have been the case with Dubai Pearl. Had we been informed about 20% reduction at the time of booking the unit, we would have certainly decided against our investment in Dubai Pearl. This has already been brought to the notice of your VP Sales & Marketing through our Relationship Manager and we hope that it will be resolved to our satisfaction.
GROSS AND NET UNIT AREAS
Dear Chander
Thank you for your kind words and on posting the very first question on the CEO forum.
It is unfortunate that you believe that you were not advised of the gross to net area variation at the time of purchase. As you have stated you have purchased other properties in Dubai, we would believe that you have an acceptance of gross and net measurements as this is the norm. We have examined your documents and they clearly state that the property you purchased is defined with a gross area. Remember that when you lease this property out, you will do so on a gross basis, so your investment returns will not be affected. The rental we pay for our corporate offices is on a gross basis, and I can assure you that we do not have 80% floor area usage.
Our architects have advised that there is no multi-storey building with a gross to net area of 2-3% - it is simply impossible. The only building that can have such a ratio is a single level building for usage by one occupier as it will not have any passages, lift lobby’s or other common areas. As a property developer, you have to build the entire building, you cannot leave out lift lobbies and passages etc., and thus all space around the world is sold on a gross basis. We have used the approved TECOM floor measurement system to calculate all our floor areas, as they are our controlling authority, and would be more than happy for you to sit with our architect and they can show you this is as much detail as you would require. We will contact you via the e-mail address you have left us, to arrange a time, at your convenience, for us to meet.
Regards